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hoa loans Since 2007, CondoAssociation.com has been putting together condo associations and HOAs with qualified lending partners that understand the business of community associations. Our HOA lending partners understand the business of community associations and are prepared to help your condo association or HOA get the money it needs.


HOA Loan FAQs

What is a HOA or Condo Association Loan?

An HOA loan is specialized in that it is secured with a community associations' future cash flow produced by condo fees. Lenders normally reserve the right to assess the HOA should it get behind on servicing the loan.

Why would associations need a HOA Loans?

  • Capital repairs and improvements to buildings and common areas.  Examples of this include roof replacement and driveway asphalting. 
  • Litigation Funding - Its not uncommon to pursue litigation against developers and build material manufacturers for construction defects. Litigation funding can provide monies needed to get an HOA through an extending litigation process that may take years.

Who provides HOA Loans?

HOA lending is still a very specialized practice and is mostly local.  CondoAssociation.com alleviates the headache of identifying HOA loan sources for our HOA community our partner lending network. Simply fill out the form and wait for a phone call from a qualified lending partner in 1-2 business days.

How long does it take to get an HOA Loan?

It normally depends on the time it takes for the association to get financial information back to the HOA lenders and the association's attorney to write an opinion as to the association's creditworthiness and legal ability to assign assessments rights the the condo association.  This can last anywhere from 30 - 90 days.

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Condo association loans are the best way to finance projects

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Loans and Lines of Credit are now available to Condominium Associations (and HOAs) as a great financing alternative to abrupt assessments that often financially squeeze condo owners. 

Rates for condo association loans are competitive; around 7%, which makes an association loan a very attractive alternative.  (This rate may be more or less depending on the creditworthiness of the condo association)

Take the case of a $1 million dollar project.  If the condo association has 100 units, an up-front assessment may cost each owner in the ballpark of $10,000, which will most likely burden the owners.

On the other hand, if the condo association is to take out a loan on $1 million at 7%, this would roughly cost the condo association $5,833 per month or $58.33 to each unit owner per month, which may alleviate a lot of headaches for condo association members. 

The condo association may either raise condo fees to absorb this less burdensome, easier cost or may decide to pay of the association loan in full at some point or paydown a substantial percentage of the loan.  For example, maybe a mini-assessment every year towards paying down the loan.

Association lenders will use the right of assessment as collateral for the loan.  Associations that may qualify for this specialized loan include condo, timeshare and community associations, along with co-ops.

Condo association loans can certainly ease the pain that condo owners usually feel with hard-hitting assessments.